One of the best ways to keep your portfolio safe while generating consistent income is in safe, dividend-paying retirement stocks at 52-week lows. It’s even better if you’re buying into a reputable company that’s paid out dividends for years, and is on sale.
Look at American States Water (NYSE:AWR), for example. Over the last few months, the water and electric utility stock plunged to about $66 a share from $85 in December. All thanks to an increase in operating costs, interest expenses, and higher interest rates.
However, with an eventual interest rate cut from the Federal Reserve, AWR should benefit. Also, with a 69-year history of dividend payouts, it’s still a strong Dividend King that will bounce back as it historically has. Even better, the stock yields 2.45% at the moment. Crisis will lead to opportunity, with patience.
Some of the other top, beaten-down, dividend-paying retirement stocks at 52-week lows include:
Johnson & Johnson (JNJ)
Johnson & Johnson (NYSE:JNJ) has been a slow-motion train wreck. Since topping out at around $162.50, it plummeted to a low of about $143, where it’s trying to pivot higher. Analysts at HSBC just upgraded JNJ to a buy rating, with a price target of $170.
According to the firm, as quoted by TheFly.com:
“The shares have retreated to three-year lows despite fundamentals that are unchanged and headwinds that are well known, says the analyst, who sees ‘asymmetric risk and attractive upside’ as well as diversity that limits material operational downside for J&J.”
Helping, the company just won one of the talc-related lawsuits. A Florida jury found that JNJ’s baby powder talc did not cause the ovarian cancer of a woman who passed back in 2019.
Recent earnings haven’t been too shabby either. In its first quarter, adjusted earnings of $2.71 beat estimates for $2.64. Revenue of $21.38 billion was in line with expectations for $21.4 billion. JNJ also said it was increasing its quarterly dividend to $1.24 from $1.19, which is payable on June 4.
Nike (NKE)
With a yield of 1.58%, Nike (NYSE:NKE) is slowly bouncing from recent lows. Last trading at $93.94, I’d like to see it retest $120 near term. Granted, the stock dropped as sales and guidance disappointed. But it’s one of the top retirement stocks at 52-week lows to buy.
With a good deal of negativity priced in, analysts are still bullish. Stifel, for example, has a buy rating with a price target of $119. “Considering the market leading position and structural margin opportunity, we continue to view shares worth a premium,” they added, as quoted by Barron’s.
Analysts at Bank of America also upgraded Nike to a buy rating with a price target of $118. The firm cited the company’s efforts to transform with cost cuts, and the expected benefit from the upcoming Olympics in Paris. Plus, I’m encouraged by the company’s new line of footwear and apparel, which was recently debuted.
Even better, Nike recently paid out a 37-cent per share dividend on April 1. If you missed it, there should be more dividend announcements on the way.
Hershey (HSY)
Beaten-down shares of Hershey (NYSE:HSY) are still struggling. But that’s to be expected with sky-high chocolate costs on the heels of a global cocoa shortage. All thanks to damaged crops in West Africa, which contributes about 80% of the world’s cocoa output, says JPMorgan. Fortunately, according to JPMorgan, cocoa prices should start to come down slightly, medium-term.
The good news is Hershey continues to increase its quarterly dividends. Its latest quarterly dividend of $1.37 was paid out on Feb. 20. That was its 376th consecutive payout. In addition, as noted by Seeking Alpha:
“Even as the EPS is expected to remain flat in 2024, I don’t believe there’s any risk to the increased dividend levels. In fact, the latest increase is a continuation of the company’s long-standing commitment to growing dividends for the past 14 years.”
While HSY isn’t out of the woods with the cocoa crisis just yet, we can collect its yield while we patiently wait for an eventual recovery. It’s another one of the top retirement stocks at 52-week lows to buy.
British American Tobacco (BTI)
After testing a 52-week low of $29.09, British American Tobacco (NYSE:BTI) is slowly pivoting higher. Last trading at $29.40, I’d like to see it eventually retest $34.
Granted, the company has been struggling with falling numbers of smokers. In fact, according to the Centers for Disease Control and Prevention, the number of smokers fell from 29.9% in 2005 to about 11.5% in 2021. Still, with the addictive nature of nicotine, BTI still saw sales grow 3% last year with profits up 6%, as noted by InvestorPlace contributor Rich Duprey.
Keeping the stock attractive is its current yield of about 10%. Plus, it just announced it bought back 210,000 shares. And its focus on smokeless tobacco appears to be paying off.
According to CEO Tadeu Marroco, as quoted in a company press release:
“2023 was another year of resilient financial performance and delivery in line with our guidance, underpinned by our global footprint and multi-category strategy, despite a challenging macro-environment… New Categories delivered continued volume-led revenue growth and increased profitability, driven by Vuse and Velo.”
Biogen (BIIB)
We can also look at clobbered shares of Biogen (NASDAQ:BIIB) – another one of the top retirement stocks at 52-week lows to buy.
After topping out at around $320, BIIB is now attempting to bounce off its low of $189.52. All after it posted disappointing fourth quarter earnings and guidance.
Fortunately, things are starting to slowly improve for the company, with its first quarter EPS of $3.67 beat by 21 cents. Revenue did slip to $2.29 billion – which was down about 7% year-over-year (YOY) and missed estimates by $30 million.
Helping, the company did say its uptake for its Alzheimer’s therapy Leqembi is improving. CEO Christopher Viehbacher, as quoted by TheFly.com, said:
“We see momentum building at a steady pace for LEQEMBI. In particular, we were encouraged that LEQEMBI in-market revenue for the first quarter nearly tripled sequentially and we saw a significant build in month-to-month new patient starts in the first quarter.”
While BIIB does not have a dividend, it’s still worth investing in at its recent lows.
Healthcare Realty Trust (HR)
With a yield of 8.84%, real estate investment trust (REIT), Healthcare Realty Trust (NYSE:HR) is slowly pivoting off of its 52-week lows as well. Last trading at $14.03, I’d like to see HR retest $17.
The owner of medical outpatient buildings, it’s also the “first and largest REIT to specialize in medical outpatient buildings, Healthcare Realty’s portfolio includes nearly 700 properties totaling over 40 million square feet concentrated in 15 growth markets,” as noted on its site.
Even better, its last quarterly dividend of 31 cents was paid out on March 14, and is part of the REIT’s 11-year strong history of regular payouts.
Unfortunately, fourth quarter revenues missed, and guidance did come in light. However, we do have to consider that a growing shift to outpatient care is increasing demand for medical office building, says real estate company, JLL, as noted by Becker’s ASC Review.
In fact, JLL just noted that “Off-campus medical office buildings saw a 1.9% increase in occupancy from 2019 to 2023. Outpatient sites that are expected to see the most rapid growth include those for ambulatory surgery, endoscopy and hospital outpatient departments.”
All of which should be a positive catalyst for Healthcare Realty Trust.
Universal Health Realty Income Trust (UHT)
Another beaten-down REIT with high yield is Universal Health Realty Income Trust (NYSE:UHT).
The REIT, which owns and operates 76 healthcare facilities in 21 states, has a 38-year history of increasing its dividends. Currently yielding about 8.5%, its latest dividend of 72.5 cents was just paid out on March 29. While the company has struggled with interest expenses, that should cool off a bit when the Federal Reserve starts cutting interest rates again.
UHT also just posted net income of $5.3 million, or 38 cents per diluted share, as compared to the $4.5 million, or 32 cents per diluted share a year earlier. Revenue of $25.14 million was also up about 8.2% YOY from $23.22 million.
In addition, with an aging U.S. population, the REIT should do well moving forward. According to Urban.org:
“The number of Americans ages 65 and older will more than double over the next 40 years, reaching 80 million in 2040. The number of adults ages 85 and older, the group most often needing help with basic personal care, will nearly quadruple between 2000 and 2040.”
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.